Sunday, December 30, 2012

The economy of Egypt is fine … in another parallel universe

Newspapers today

Yesterday president Morsi stood in front of the Shura council saying with all confidence “Those who are claiming that Egypt on the verge of bankruptcy are the bankrupt” making the headlines of almost 5 newspapers. “ The 3 official papers and 2 private owned including freedom and justice party”
Yesterday also Prime minister Hisham Kandeel told journalists in Cairo that countries do not bankrupt , bankruptcy happens only in companies !! “He did not know that many countries in the world declared its bankruptcy when it failed to pay its debts”
Yesterday as well before Morsi would say his word and Kandeel would speak to the journalists with all confidence , the Central Bank of Egypt issued a statement declaring that the Egyptian foreign reserve hit rock bottom for real using numbers and dates.
Today the Egyptian Pound hit a new record low against the US dollar. Believe or not it earlier today the US dollar was sold for LE 6.34 in Egyptian banks while now “@4:08 PM” I hear that it is being sold for LE 6.6. This is in banks , it is not Forex companies or in the black market.

Clearly the president and his prime minister did not read this important report that is available online. It seems to me that the President got wrong info yesterday from some unknown source. The man said that tourism rates increased in the last months when according to tourism experts this is one of the most lowest touristic seasons in Egypt. This time usually you would find a single room available in Luxor , Aswan and Sharm !!
Hotel owners are selling their hotels and motels in Luxor and Sharm Sheikh for God sake.
Of course today Kandeel is speaking about having a national dialogue about economy !! What national dialogue in time of crisis !??

The CBE statement

The MB media and e-committees are spreading rumors that there is no economic crisis and the media “following the Mubarak’s regime remnants” is spreading these claims. Some MB members are waiting for the divine Qatari intervention to save Egypt while others say that “it is not a problem that our pound is hitting rock bottom because Chinese Yuen is also low and Chinese economy will be greater than American economy by 2030 !!”
Yes they compare Egypt to China !!
Anyhow back to Morsi and Kandeel, I do not know how they are fooling !! Do they believe their lies and thank people are naive to believe their lies as well !! They are speaking about the economy of Egypt indeed .. in parallel universe.

No Morsi is just doing what any good president would do, reassuring the markets. Its what Sarkozy and Cameron do, so that the markets don't panic. He can't just come out and say everything is terrible, imagine what the stock market would do!

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